Glencore PlcOTCPK - Current
Thu, Oct. 20, 3:25 AM
- Glencore (OTCPK:GLCNF) has agreed to sell its Australian coal haulage business GRail to Genesee & Wyoming (NYSE:GWR) for A$1.14B ($874M).
- The deal takes Glencore's asset sales to $4.7B in 2016 and puts the mining and trading giant on course to reduce its net debt to $16.5-17.5B by the end of the year.
- For its part, Genesee & Wyoming plans to sell 49% of GRail to funds managed by Macquarie Infrastructure & Real Assets (OTC:MCQEF).
- Still, the purchase will double the size of Genesee & Wyoming's Australian operations and is expected to boost its EBITDA by A$100M in 2017.
Wed, Aug. 24, 4:06 AM
- Glencore's (OTCPK:GLCNF) H1 adjusted net profit slumped two thirds to $300M and missed consensus of $318M.
- Adjusted underlying profit (EBITDA) fell 13% to $4B.
- Still, Glencore has cut debt to $23.6B by divesting assets and today said that it's agreed to sell future output from an Australian gold and copper mine for $670M to Evolution Mining (OTCPK:CAHPF).
- Glencore also set a new target of reduce debt to $16.5-17.5B by the end of year vs a previous aim of $17-18B.
- Shares are -2.6% in London. (PR)
Wed, Jun. 8, 9:39 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) agrees to sell a ~10% stake in its agricultural business to British Columbia Investment Management Corp for $625M, confirming an earlier report.
- Glencore Agri also will take on $3.6B in debt currently funded by Glencore, helping to pare debt on the parent's books; the debt would be financed without recourse to Glencore.
- The deal follows the company's sale of a 40% stake in Glencore Agri to Canada Pension Plan Investment Board for $2.5B in April, and will leave Glencore with a shade over 50% of the business.
Aug. 27, 2015, 5:25 PM
- Viterra, the Canadian grain handler owned by Glencore (OTCPK:GLCNF, OTCPK:GLNCY), agrees to acquire the largest oilseed processing plant in eastern Canada for $190M to triple crushing capacity.
- The deal more than triples Viterra's crushing capacity, which the company says places it among the three biggest processors in Canada with Bunge and Cargill.
- The Quebec plant on the St. Lawrence Seaway can process 1.05M metric tons/year of canola and soybeans; Canada is the world's top producer of canola.
Apr. 6, 2015, 12:45 PM
- A six-month moratorium on merger talks between miners Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Rio Tinto (NYSE:RIO) ends tomorrow, and WSJ reports that the divergence between prices for copper and iron ore are giving deal supporters fresh hope.
- Glencore shares have climbed more than 15% since mid-January while Rio’s have dipped 3%, as iron ore prices recently hit 10-year lows below $50/ton in a long decline from highs of $190/ton reached in 2011; copper prices, meanwhile, have rebounded by ~5% to slightly more than $6K/ton in the past month.
- "Sooner or later either [Rio is] going to have to back away from the volume growth strategy, or they’re going to have to face the prospect that their earnings are going to fall through the floor,” says Sanford C. Bernstein analyst Paul Gait, adding that If Rio’s earnings keep falling and its share price suffers, “they’re going to be vulnerable to Glencore."
- As recently as February, Rio CEO Sam Walsh said he was not interested in a deal with Glencore.
- Another take: Glencore held back from Rio by value after takeover rule expires
Apr. 2, 2015, 11:36 AM
- The shackles keeping Glencore (OTCPK:GLCNF, OTCPK:GLNCY) CEO Ivan Glasenberg from grabbing control of Rio Tinto (NYSE:RIO) will be removed next week when a U.K. takeover rule barring a hostile offer expires, but recent share price moves are likely to keep Glasenberg's desires in check for now, Bloomberg reports.
- While both companies are weathering the commodity price rout, Glencore is down 15% since its approach was revealed in October, vs. a 6% drop in Rio, giving it a market value about £14B ($21B) more than its rival; as of yesterday, Glencore was valued at £37.1B vs. Rio's £51.6B.
Feb. 25, 2015, 2:45 AM
- Rio Tinto (NYSE:RIO) will not be taken over by rival Glencore (OTCPK:GLNCY) because there is no value in it for shareholders and regulators will never let it happen, announced Rio Tinto chief executive Sam Walsh.
- Rio snubbed a takeover approach from Glencore last August to create a $160B mining and trading giant, but Glencore never ruled out making a fresh attempt.
- Under U.K. rules, it could return with an offer from April onward.
- Previously: Glencore confirms it is no longer considering merger with Rio Tinto (Oct. 07 2014)
- Previously: Rio Tinto says it turned down Glencore merger idea in August (Oct. 06 2014)
Nov. 24, 2014, 6:28 PM
- Various hedge funds were told this month by a prominent London mining banker to prepare for an all-but-inevitable takeover of Rio Tinto (NYSE:RIO) by Glencore (OTCPK:GLCNF, OTCPK:GLNCY), Bloomberg reports.
- Former JPMorgan Chase dealmaker Ian Hannam, who now runs a boutique advisory firm, reportedly convened reps of more than 20 investors to share his views on the potential deal, perhaps intended in part to help position his firm to win a role in the transaction.
- Glencore said last month it had abandoned a bid for Rio after a July proposal worth ~$160B was rebuffed.
Nov. 20, 2014, 6:28 PM
- Nevsun Resouces (NYSEMKT:NSU) has emerged as a potential takeover target, and Financial Post's Peter Koven sees many positive factors to explain the interest and one big negative: Eritrea.
- NSU’s Bisha mine is extremely rich, with high-grade copper output that will transition into high-grade zinc output in coming years when many analysts expect shortages in the zinc market.
- But the downside is that Bisha is in Eritrea, which is ruled by one of the world’s most repressive governments and has caused major problems for the company.
- If a contested takeover battle is going to happen, analysts say offers would have to come from companies - perhaps Glencore (OTCPK:GLCNF, OTCPK:GLNCY) or Lundin Mining (OTCPK:LUNMF, LUNCF]]) - that are very comfortable in high-risk jurisdictions.
Oct. 12, 2014, 3:37 AM
- JSW Steel has reportedly offered to take control of London Mining (OTC:LIIGF) by buying up its loans at a sharp discount.
- Frank Timis, chairman of African Minerals (OTCPK:AMLZF), is also reportedly bidding for London Mining through his family company.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) has decided not to bid after considering entering the fray.
- On Friday London Mining said talks with relevant strategic partners had ended, and it was expected to enter receivership on Monday.
- Related: London Mining warns shares could have "no value" (Oct. 8)
Oct. 10, 2014, 6:11 PM
- Rio Tinto (NYSE:RIO) may decide that its best defense against another takeover approach from Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is buying the likes of Freeport McMoRan (NYSE:FCX) in a "classic kind of defensive move," Bernstein analyst Paul Gait speculates.
- While Rio is saying it’s better off going it alone, a deal for FCX could help it ward off any further advances from Glencore as well as provide a way to lessen its dependence on iron ore at a time when the metal is slumping, Gait says.
- FCX "fits all the criteria of an attractive takeout candidate and would make sense for... anyone looking to increase their copper exposure and getting some very high-margin energy assets at the same time,” BB&T's Garrett Nelson adds.
- FCX shares are now at their cheapest in more than 15 months relative to EBITDA.
Oct. 8, 2014, 10:30 AM
- With any hope of Glencore (OTCPK:GLCNF, OTCPK:GLNCY) buying Rio Tinto (NYSE:RIO) on hold for six months, Glencore could turn to other targets such as Fortescue Metals (OTCPK:FSUMF) or Rio could pursue a defensive deal with a company such as Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), Sanford Bernstein analyst Paul Gait speculates.
- In the past, “we have had that kind of one action precipitate a whole cascade of events that puts a number of other guys in play," Gait tells Bloomberg.
- On the other hand, Glencore's pursuit of Rio may not be over, Gait says, adding "the industrial logic and the strategic logic are compelling to the point of being overwhelming."
Oct. 7, 2014, 10:33 AM
- Rio Tinto (RIO -4.1%) drops sharply after Glencore (OTCPK:GLCNF, OTCPK:GLNCY) states it is no longer interested in pursuing a combination with Rio.
- Glencore says it will be subject to Rule 2.8 of the City Code on Takeovers and Mergers for six months in relation to Rio while reserving the right to make an offer in the future.
- Rio had said earlier that it rejected a Glencore bid in August and that no discussions are taking place.
Oct. 7, 2014, 8:26 AM
- Rio Tinto (NYSE:RIO) is up more than 5% in London trading after the miner said a deal with Glencore (OTCPK:GLCNF, OTCPK:GLNCY) was not in the best interests of shareholders, and there had been no contact between the companies since August.
- Analysts caution that investors may be jumping in too swiftly, seeing the potential value of a deal but overestimating the likelihood of an agreement being struck.
- Glencore has many reasons to chase Rio, and to not take the rejection in July as the final word, but the idea is less compelling for Rio, which sees itself as a specialist top-drawer miner with a marketing business attached, and views Glencore as the reverse.
- A formal bid could face regulatory concerns in Australia, where Rio mines most of its iron ore and has a listing on the country’s stock exchange.
- RIO -1% premarket after surging 9% in yesterday's trade.
Oct. 6, 2014, 7:17 PM
- Rio Tinto (NYSE:RIO) says it rejected an informal approach from Glencore (OTCPK:GLCNF, OTCPK:GLNCY) about a potential merger in August and has had no further contact.
- Rio rose 9.1% in the session after a Bloomberg report around midday said Glencore had been laying the groundwork for a potential deal with Rio next year and has reached out to Rio’s biggest investor, Chinalco (NYSE:ACH), to gauge its interest in a deal.
- Clarkson Capital notes that while a strategic merger would make sense, it believes too many obstacles would need to be overcome for a deal to happen; also, Rio's ADR share price is down less than 10% YTD even as iron ore prices are down more than 40% (Briefing.com).
Oct. 6, 2014, 12:16 PM
- Rio Tinto (RIO +9.8%) skyrockets on a Bloomberg report that Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is laying the groundwork for a potential merger with the company in the next year that would create the world’s largest mining company.
- Glencore is said to have has reached out in recent weeks to Chinese state-backed Chinalco (NYSE:ACH), which is Rio’s largest shareholder with a ~9.8% stake, to gauge its interest in a potential deal.
- However, no talks are yet underway between the two companies, no formal offer has been made, and none is likely before the end of 2014.